The Internal Revenue Service federal tax withholding rates have changed for the 2022 tax year. The new rates were implemented January 1, 2022 and may impact the federal tax withholding amount on your DERP Pension Benefit payment.

Do you want to change your federal or Colorado tax withholdings?

You can adjust your federal and Colorado tax withholding preferences in your account. Changes completed by the 20th calendar day of the month will take effect on your next payment.

Follow these steps to elect a new federal or Colorado tax withholding:

  1. Log in to your account.
  2. Select the Tax Withholding button or hyperlink.
    A window will open showing your current federal and state withholding elections.
  3. Click the Create Tax Withholding button.
  4. Expand the Tax Type dropdown and select the tax option you want to modify.
  5. Click the checkbox next to tax option that meets your needs OR expand the Filing Status dropdown and select your filing status and DERP will calculate and withhold taxes based on the IRS tax tables.
    • Do not withhold tax – Check this box if you do not want federal taxes withheld from your monthly DERP Pension Benefit payment. You may be responsible for paying estimated taxes. If you live in a foreign country, you cannot choose this option.
    • Withhold Flat Tax –Check this box and enter the dollar or the percentage amount you want withheld from your monthly DERP Pension Benefit payment.
  6. Click the Submit button.
    Click the Back button to see your updated tax withholding elections and effective dates.


Send an email to or call (303) 839-5419, Monday-Friday from 8:00 a.m. – 5:00 p.m.

DERP cannot provide tax counseling. Questions about your taxes should be directed to your personal tax advisor, the IRS, and/or the Colorado Department of Revenue.